Managing Broker Rivera is the seller's agent for a Redmond property. After an accepted offer, the buyer's inspector discovers a cracked foundation beam. The seller, knowing about this defect before listing, had not disclosed it. Rivera was unaware of the defect until the inspection. Under RCW 18.86, which statement best describes Rivera's liability?
Correct Answer
A) Rivera may be liable if she failed to exercise reasonable care and diligence that would have led a competent broker to discover the defect.
Under RCW 18.86.040(1)(d), a seller's agent owes the seller a duty of reasonable care and diligence. Washington courts and DOL have interpreted this to mean that a licensee may be liable if a competent broker exercising reasonable care would have discovered the material defect through visual inspection or inquiry. Rivera's lack of actual knowledge is a partial defense, but she could still face liability if she failed to conduct a reasonable visual inspection of the property as part of her listing duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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